[Federal Register Volume 88, Number 80 (Wednesday, April 26, 2023)]
[Notices]
[Pages 25437-25438]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-08762]


-----------------------------------------------------------------------

POSTAL REGULATORY COMMISSION

[Docket No. PI2023-4; Order No. 6488]


Changes Associated With the Delivering for America Plan

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Commission is initiating a proceeding to examine the 
recent and planned network changes associated with the Postal Service's 
Delivering for America strategic plan. This notice informs the public 
of the filing, invites public comment, and takes other administrative 
steps.

DATES: None.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Those who cannot submit comments 
electronically should contact the person identified in the FOR FURTHER 
INFORMATION CONTACT section by telephone for advice on filing 
alternatives.

FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 
202-789-6820.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction
II. Background
III. Public Inquiry
IV. Ordering Paragraphs

I. Introduction

    The Commission establishes Docket No. PI2023-4 to examine the 
recent and planned network changes associated with the Postal Service's 
Delivering for America strategic plan.\1\
---------------------------------------------------------------------------

    \1\ See United States Postal Service, Delivering for America: 
Our Vision and Ten-Year Plan to Achieve Financial Sustainability and 
Service Excellence, March 23, 2021, available at https://about.usps.com/what/strategic-plans/delivering-for-america/assets/USPS_Delivering-For-America.pdf (Postal Service Strategic Plan).
---------------------------------------------------------------------------

II. Background

    On March 23, 2021, the Postal Service published a 10-Year Strategic 
Plan announcing potential changes intended to achieve financial 
stability and service excellence. See Postal Service Strategic Plan. 
The Plan contains 11 key strategies for achieving these goals and 
discusses, at a high level, various initiatives it intends to undertake 
in furtherance of each strategy. Id. at 5, 22-39. The Plan also states 
that the Postal Service will provide opportunities for stakeholder 
input and engagement, including by the Postal Service requesting 
advisory opinions from the Commission.\2\
---------------------------------------------------------------------------

    \2\ Id. at 26-27, 35, 41, 52. See United States Postal Service, 
Delivering for America, Responses of the United States Postal 
Service to the Reporting Requirements Specified in the Postal 
Service Reform Act of 2022, FY 2022 3rd and 4th Quarter, December 2, 
2022, at 23 n.4, available at https://www.prc.gov/docs/124/124453/REDACTED_Final_DFA-PSRA_Section_207_Report_12.02.2022.pdf (Postal 
Service DFA PSRA Responses).
---------------------------------------------------------------------------

    Subsequently, the Postal Service filed three requests with the 
Commission for

[[Page 25438]]

advisory opinions on proposed service standard changes related to the 
strategic plan that involved First-Class Mail, Periodicals, First-Class 
Package Service, Retail Ground, and Parcel Select Ground.\3\ After 
providing an opportunity for a formal on-the-record hearing, pursuant 
to 5 U.S.C. 3661(c), the Commission issued advisory opinions on the 
Postal Service's proposed service standard changes, analyzing the 
estimated impact of the proposals on the Postal Service's service 
performance, financial condition, operational flow, transportation 
network, customer satisfaction, and mail volume.\4\
---------------------------------------------------------------------------

    \3\ See Docket No. N2021-1, United States Postal Service Request 
for an Advisory Opinion on Changes in the Nature of Postal Services, 
April 21, 2021; Docket No. N2021-2, United States Postal Service 
Request for an Advisory Opinion on Changes in the Nature of Postal 
Services, June 17, 2021; Docket No. N2022-1, United States Postal 
Service's Request for an Advisory Opinion on Changes in the Nature 
of Postal Services, March 21, 2022.
    \4\ Docket No. N2021-1, Advisory Opinion on Service Changes 
Associated with First-Class Mail and Periodicals, July 20, 2021, at 
2; Docket No. N2021-2, Advisory Opinion on the Service Standard 
Changes Associated with First-Class Package Service, September 29, 
2021, at 3; Docket No. N2022-1, Advisory Opinion on the Service 
Standard Changes Associated with Retail Ground and Parcel Select 
Ground, June 9, 2022, at 2.
---------------------------------------------------------------------------

    Most recently, the Postal Service announced plans to create sorting 
and delivery centers (S&DCs).\5\ The purpose of the S&DCs is to 
``reduce transportation and mail handling costs'' \6\ by aggregating 
delivery units into ``larger Sort and Delivery Centers with adequate 
space, docks and material handling equipment to operate more 
efficiently.'' \7\ The daily operating function of the S&DC will be 
essentially the same as a destination delivery unit (DDU), ``except on 
a larger scale and with much greater efficiency, operational 
reliability and staffing flexibility.'' \8\ The first S&DC opened in 
Athens, Georgia in November 2022.\9\ Likewise, the Postal Service 
anticipates transforming its network through standardized Regional 
Processing and Distribution Centers (RPDCs) and Local Processing 
Centers (LPCs). See Postal Service DFA PSRA Responses at 9, 20.
---------------------------------------------------------------------------

    \5\ See United States Postal Service, Video and Transcript of 
Postmaster General Louis DeJoy's Keynote Address During the 2022 
National Postal Forum, May 18, 2022, available at https://about.usps.com/newsroom/national-releases/2022/0518-video-and-transcript-of-pmg-louis-dejoys-keynote-address-during-2022-national-postal-forum.htm.
    \6\ See United States Postal Service, Letter to Edmund A. 
Carley, National President, United Postmasters and Managers of 
America from James Lloyd, Director, Labor Relations Policies and 
Programs, July 29, 2022, available at https://www.unitedpma.org/docs/default-source/default-document-library/resources/notification-0729202246b67af2-353b-48a5-9ca8-87cf43e95d81.pdf?sfvrsn=6055688d_3.
    \7\ See United States Postal Service, The Eagle Magazine, Volume 
1, Issue 4, July 2022, at 11, available at https://about.usps.com/resources/eaglemag/em20220802.pdf.
    \8\ See United States Postal Service, The Eagle Magazine, Volume 
2, Issue 2, Feb. 2023, at 11, available at https://about.usps.com/resources/eaglemag/em20230131.pdf.
    \9\ See KBTX 3 News, Proposed USPS sorting & delivery plan could 
impact mail delivery across the region, Jan. 23, 2023, available at 
https://www.kbtx.com/2023/01/24/proposed-usps-sorting-delivery-plan-could-impact-mail-delivery-across-region/.
---------------------------------------------------------------------------

    The Commission discussed potential impacts to flats operations and 
costs due to the new S&DCs in its Flats Operations Study Report, 
largely based on information provided to stakeholders and Postal 
employees.\10\ However, the Commission notes that stakeholders have 
expressed concerns regarding a lack of a forum to explore the impacts 
of these proposed changes.\11\ The Commission previously found that an 
advisory opinion on the entirety of the Postal Service Strategic Plan 
was not warranted.\12\ The instant docket is not intended as an 
advisory opinion process on the Postal Service Strategic Plan. However, 
the Commission finds it beneficial to the interest of transparency to 
provide a forum to learn more about these strategic plan initiatives 
that may have a significant impact on the postal community. 
Accordingly, the Commission opens this Public Inquiry to provide a 
forum to seek additional information about the planned S&DCs, as well 
as other planned initiatives associated with the Postal Service 
Strategic Plan.
---------------------------------------------------------------------------

    \10\ See Docket No. SS2022-1, Flats Operations Study Report, 
April 6, 2023, at 198-99.
    \11\ See, e.g., Steve Hutkins, The S&DC rollout rolls on: 
Implementation & Impacts of Delivery Network Transformation, Save 
the Post Office, Jan. 26, 2023, available at https://www.savethepostoffice.com/sdc-rollout-rolls-on-implementation-impacts-of-delivery-network-transformation (``Some details about the 
plan have been revealed over the past several months, but the Postal 
Service has, for the most part, been reluctant to share much with 
stakeholders and the public.''); Bill McAllister, USPS outlines 
plans for new sorting and delivery centers, LINN's Stamp News, Sep. 
6, 2022, available at https://www.linns.com/news/us-stamps-postal-history/usps-outlines-plans-for-new-sorting-and-delivery-centers 
(``Postal officials have disclosed few specifics about DeJoy's plans 
. . .'').
    \12\ See Docket No. C2022-1, Order Granting Motion to Dismiss 
Complaint, December 17, 2021 (Order No. 6067).
---------------------------------------------------------------------------

III. Public Inquiry

    The Commission establishes this proceeding to provide a forum to 
garner information regarding proposed changes related to the Postal 
Service's Strategic Plan. The Commission anticipates that it will issue 
information requests to gather information about the proposed changes 
to the network and the impact of recent changes to the postal network. 
Interested parties also may propose questions by filing motions seeking 
information requests following the procedures listed at 39 CFR part 
3010.170(e).
    Materials filed in this proceeding will be available for review on 
the Commission's website, unless the information contained therein is 
subject to an application for non-public treatment. The Commission's 
rules on non-public materials (including access to documents filed 
under seal) appear in 39 CFR part 3011. Additional information may be 
accessed via the Commission's website at http://www.prc.gov. Pursuant 
to 39 U.S.C. 505, Kenneth R. Moeller will serve as an officer of the 
Commission (Public Representative) to represent the interests of the 
general public in this docket.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. PI2023-4 to review issues 
related to the Postal Service's Delivering for America Strategic Plan.
    2. Pursuant to 39 U.S.C. 505, Kenneth R. Moeller will serve as an 
officer of the Commission (Public Representative) to represent the 
interests of the general public in this docket.
    3. The Secretary shall arrange for publication of this Notice in 
the Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2023-08762 Filed 4-25-23; 8:45 am]
BILLING CODE 7710-FW-P